Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Blaby. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Blaby have the right to extend the lease for an additional ninety years under legislation. Please give due attention before delaying your Blaby lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Blaby with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Blaby,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blaby valuers.
Following protracted discussions with the landlord of her first floor apartment in Blaby, Sarah commenced the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in October 2009. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were phoned by Mr G Harris who, having moved into a purpose-built apartment in Blaby in August 2003. The question was if we could approximate the price could be for a 90 year lease extension. Identical premises in Blaby with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 collected every twelve months. The lease ended in 2085. Taking into account 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus fees.
Mr and Mrs. V François acquired a purpose-built flat in Blaby in February 2003. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Blaby with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was in 2096. Considering the 71 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.